Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

Question

Rocky River Fast Lube does oil changes on vehicles in 15 minutes or less. The variable cost associated with each oil change is $12 (oil, filter, and 15 minutes of employee time). The fixed costs of running the shop are $8,000 each month (store manager salary, depreciation on shop and equipment, insurance, and property taxes). The shop has the capacity to perform 4,000 oil changes each month.

Answer 1

Question

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

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Rocky River Fast Lube does oil changes on vehicles in 15 minutes or less. The variable cost associated with each oil change is $12 (oil, filter, and 15 minutes of employee time). The fixed costs of running the shop are $8,000 each month (store manager salary, depreciation on shop and equipment, insurance, and property taxes). The shop has the capacity to perform 4,000 oil changes each month.

The formula to calculate the amount of manufacturing overhead to allocate to jobs is: Question content area bottom Part 1 A. predetermined overhead rate times the actual amount of the allocation base used by the specific job. B. predetermined overhead rate divided by the actual allocation base used by the specific job. C. predetermined overhead rate times the estimated amount of the allocation base used by the specific job. D. predetermined overhead rate times the actual manufacturing overhead used on the specific job.

The Fantastic Ice Cream Shoppe sold 9,000 servings of ice cream during June for $4 per serving. The shop purchases the ice cream in large tubs from the Dream Ice Cream Company. Each tub costs the shop $9 and has enough ice cream to fill 20 ice cream cones. The shop purchases the ice cream cones for $0.10 each from a local warehouse club. Located in an outdoor mall, the rent for the shop space is $2,050 per month. The shop expenses $290 a month for the depreciation of the shop's furniture and equipment. During June, the shop incurred an additional $2,700 of other operating expenses (75% of these were fixed costs).

Answer 2

Question

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

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Answer 3

Question

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

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Answer 4

Question

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

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Answer 5

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

Answer 6

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

Answer 7

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

Answer 8

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

Answer 9

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

Answer 10

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

Answer 11

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

Answer 12

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Ch. 6 - What types of costs are customarily included in...Ch. 6 - Which type of manufacturing cost (direct...Ch. 6 - Which of the following costs would be included in...Ch. 6 - In the variable costing income statement, how are...Ch. 6 - Prob. 5DQ Ch. 6 - Discuss how financial data prepared on the basis...Ch. 6 - Prob. 7DQ Ch. 6 - Explain why rewarding sales personnel on the basis...Ch. 6 - Prob. 9DQ Ch. 6 - Prob. 10DQ

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

Solution Summary: The author explains the contribution margin, variable cost of goods sold, and variable selling expenses for each salesperson.

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Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

Indicate which salesperson generated the highest contribution margin for the year.

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

Chapter 6 Solutions